Information on TerraSwap LP rewards

If you are providing liquidity on terraswap it is impossible to see the reward rate and do any calculations to assess the value and existence of rewards.

3rd party metrics like Terraswap Dashboard bLUNA-LUNA tell me for instance that bLuna/Luna has approx 50% APR, but there is no indication* in the terraswap docs where you will realise those rewards (it i implied it is in LP tokens, but LP balance in a pool remains a fixed number and does not increase over time).

With no ability to gauge performance it feels like liquidity is being provided in blind faith and as the value of the assets in a pool vary, not even the total value of the pool can be used as a metric.

I understand there is an interface overhaul coming imminently, but there must also be a clearer update to the documentation to specify where and how LP rewards are received, and where/how this can be measured.


I was wondering the same thing. Do you know when the new interface is coming? It is also not clear to me if the rewards are paid in Ust or Luna

As far as I can tell (only had enough liquidity in to actually be able to see a daily difference since the weekend) the number of bLuna and Luna (I am in that pool) are both increasing collectively, but it is very hard to tell as it also fluctuates between the two. What is strange to me is that also though amount of tokens my LP tokens represent increases …the number of LP tokens does not budge. So essentially my LP tokens are increasing in value.

If I got to withdrawn 1LP I see this:

uLP price = 1.275892 uLP per LP
price = 1.244615 per LP

So 1 LP token is worth both 1.27 bLuna and 1.24 Luna. I am going to monitor this statistic as i think it holds the answer. The value of my LP token is what increases over time. Will update here in 3 days.

As for interface … i saw a thread here 14 days ago where DoKwon said a couple of weeks, so imminently.

I understand better now. Thanks for the clear answer, I will also check the value of my LP over time. At first, I was only looking at the quantity of Lp which doesn’t increase, but now it makes sense.

Just a quick add on for us BLUNA/LUNA LP.

Who is getting the staking rewards for the the BLUNA we have provided?
I know BLUNA is being swapped etc and owners change, but there is always BLUNA in the pool that generate rewards. And we own a part of that BLUNA.
The rewards are certanly not increasing in the anchor protocol so a little curious where they go, because they are not going to the lenders at ANCHOR since they are not been provided as collateral.

Anyone has an idea?

That is one for Delight Labs ([email protected]) or someone from TFL, as i do not know much about the inner workings of a pool, but it would not surprise me to find out that either:

a) bLuna not in a single wallet address but in whatever contract/wizardy makes a pool work, does not actually generate staking rewards.

b) It is calculated into the % APR of the pool.

c) It is the incentive/profit for Delight Labs to run and maintain Terraswap.

These are best guesses.

I now have this confirmed by Delight Labs. The proportional value of your LP token increases, rather than the number of LP tokens. I have made a spreadsheet to track this over the past 5 days and it is the case.

That’s great, I am currently tracking as well. However, I noticed that the value of LP token doesn’t increase proportionally. Currently, my gains are all in Luna but not in Bluna, but it has only been two days since I began the tracking.

Likely just due to the drop in price …that is why i count the total in my spreadsheet also (Luna + bLuna) …assuming i will 21 day burn the bLuna back i should get a 1:1 rate. You can see here: Image 2021-07-14 at 5.29.09 pm

I also started tracking the LP price for each which i get by going to the withdraw tab and entering 1 for the Luna/bLuna LP → Image 2021-07-14 at 5.30.25 pm …if i add those two values I get the total LP value. …so this increase and the total Luna/bLuna increase are my gains.

Perfect, thanks for sharing. I will add that to my spreadsheet as well. See how it goes for a week and very likely will add some more luna/bluna to the pool afterward.

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